Europe in crisis after Dutch, French reject treaty

[Henk Elegeert]

REPLY TO: D66 at nic.surfnet.nl

http://news.yahoo.com/news?tmpl=story&cid=578&u=/nm/20050601/ts_nm/eu_constitution_dc_17

"
  Europe in crisis after Dutch, French reject treaty

By Emma Thomasson and Paul GallagherWed Jun 1, 6:40 PM ET

The European Union was in disarray on Thursday after the
Netherlands followed France in resoundingly rejecting the
bloc's new constitution, possibly stalling future expansion
and disrupting decision making.

The rejection of the charter by two of the six countries
that founded the bloc in the 1950s could deal a fatal blow
to a treaty designed to make the EU run more smoothly
following its enlargement from 15 to 25 states last year.

The votes also cast doubt on the EU's hopes for a stronger
foreign policy and its plans to expand further to the
western Balkans, Turkey and Ukraine, and raised questions
about its appetite for economic reform amid mounting global
competition.

The Dutch "No" vote of 61.6 percent was even more decisive
than the nearly 55 percent scored by French opponents of the
treaty. Turnout was also a strong 62.8 percent, well above
the 39 percent in last year's European parliament election.

EU leaders urged member states to press on and ratify the
constitution, but analysts said they should admit the
document is dead. EU leaders are due to decide how to
proceed when they meet for a regular summit on June 16-17.

"To have such a very, very large turnout after the French
vote but also to have such an overwhelming "No" is really
crushing for the constitutional treaty," said Richard
Whitman from the Royal Institute of International Affairs in
London.

Dutch Prime Minister Jan Peter Balkenende, who was
criticized for a lacklustre "Yes" campaign, could face a
parliamentary vote of confidence on Thursday but it has
little chance of success. Balkenende has said he would not quit.

Latvia's parliament is expected to approve the treaty with a
big majority on Thursday, meaning 10 members representing
almost half the EU's 454 million citizens will have approved it.

European Commission President Jose Manuel Barroso called on
member states to proceed with ratification and not preempt
their summit meeting with "unilateral decisions" before then.

UNCERTAIN FUTURE

Britain faces a decision next week on whether to suspend or
go ahead with legislation to pave the way for a referendum.

Poland said on Wednesday it would decide how and when to
ratify the constitution after the EU summit. It had planned
a referendum in October, but the opposition has demanded a
delay.

The Czech Republic said on Wednesday it would seek an
extension of the November 2006 deadline for ratification to
give countries that vote "No" more time to reconsider.

Luxembourg Prime Minister Jean-Claude Juncker voiced
concerns on Wednesday about the July 10 referendum on the
treaty in his broadly pro-Europe state after the Dutch "No."

"I myself and others must plead the European cause with lots
of vigor," he told reporters in Brussels.

Juncker, whose country holds the EU presidency, also said
the Dutch and French rejections do not alter the economic
fundamentals underpinning the euro, despite the single
currency touching a new eight-month low after the Dutch result.

The euro has fallen by nearly 10 percent from its level in
mid-March, when markets began factoring in the possibility
of national rejections of the treaty.

Former European Central Bank chief Wim Duisenberg agreed
with Juncker that the euro should not suffer lasting damage,
but said the votes would be a blow to economic reforms in
the bloc.

"The political uncertainty created will hamper the efforts
in Europe to introduce more structural reforms which are so
very, very necessary," Duisenberg told CNN television. "It
will take us a couple of years at least to reassemble
ourselves."

The result is also likely to make it harder for EU leaders
to reach a deal on the long-term EU budget, already
difficult because of a looming early German election.

Dutch Finance Minister Gerrit Zalm signaled the Netherlands
would toughen its demands for a cap to the EU budget after
the "No" vote and push for a cut to the Netherlands' per
capita contribution, which is the highest of all 25 member
states.

The votes could cast doubt on the EU's plans to expand
further. Romania and Bulgaria are likely to join in 2007 as
their accession treaties have already been signed but
membership bids by Turkey, Ukraine and Balkan hopefuls might
be disrupted.

"Enlargement is going to be one of the big casualties of
this decision," said Mendeltje van Keulen, analyst at the
Clingendael Institute near The Hague.

"Romania and Bulgaria have probably just got in time ... but
for Croatia or Turkey it's a different story."
"

**********
Dit bericht is verzonden via de informele D66 discussielijst (D66 at nic.surfnet.nl).
Aanmelden: stuur een email naar LISTSERV at nic.surfnet.nl met in het tekstveld alleen: SUBSCRIBE D66 uwvoornaam uwachternaam
Afmelden: stuur een email naar LISTSERV at nic.surfnet.nl met in het tekstveld alleen: SIGNOFF D66
Het on-line archief is te vinden op: http://listserv.surfnet.nl/archives/d66.html
**********